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  July 13, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

  Aero Montreal supports appeal to the federal government

  Aero Montreal said it fully supports the arguments presented by the Canadian aerospace industry to the federal government and shares its concerns about the lack of support for the sector in Finance Minister Bill Morneau's recent economic update. This new snapshot makes no reference whatsoever to measures that would allow the industry to emerge from the crisis. That is why Aero Montreal is reiterating the importance of implementing a Canada-wide aerospace strategy, with specific measures dedicated to our sector, as soon as possible. By putting the aerospace industry at the heart of economic policies for more than 80 years, both in Quebec and in Canada, governments have succeeded in making aerospace an industry that contributes more than $25 billion to the country's GDP. Amidst the COVID-19 crisis, when other jurisdictions around the world are redoubling their efforts to support their aerospace industry, Quebec is supporting its “champion.” But the Canadian government is still waiting and Canada continues to fall behind on international markets. Aero Montreal is sounding the alarm on behalf of the Québec aerospace industry, which represents 49 per cent of the Canadian aerospace sector's workforce and 57 per cent of its sales. In Canada, research and development is at the heart of the aerospace industry, with an investment of $1.4 billion per year, more than 70 per cent of which is carried out in Quebec. In times of economic recovery, innovation is critical. For example, France is banking on an innovative recovery with a carbon-neutral aircraft. The United States has repeatedly demonstrated its support for the defence sector, allowing for the development of leading edge technologies that can be transferred to commercial aircraft. Canada must, without further delay, continue to invest in this strategic sector to position itself in this race for innovation. In order to succeed, our industry must be able to retain its highly-skilled workforce and prevent the ecosystem from being eroded. “The unprecedented mobilization of all players in the aerospace industry illustrates the intensity of the crisis we are experiencing. Through a collective approach, we are advocating the urgent need for a specific strategy dedicated to our sector that will accelerate the recovery, while emphasizing that this cannot be achieved without the help of the federal government,” said Suzanne M. Benoît, president of Aero Montreal. https://www.skiesmag.com/press-releases/aero-montreal-supports-appeal-to-the-federal-government/

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  April 6, 2020 | Local, Aerospace

  CAE to implement temporary layoffs, will begin producing ventilators

  CAE announced that it has taken a series of flexible measures to protect its financial position in response to the COVID-19 crisis and mitigate the impact on its employees. The measures include temporarily suspending its common share dividend and share repurchase plan, as well as temporarily laying off 2,600 of its 10,500 employees and placing another 900 employees on a reduced work week. CAE also announced that, in an effort to help save lives, it is developing an easy-to-manufacture ventilator which will provide life support to patients in intensive care. “CAE continues to support its customers as the training services we provide are considered essential around the world. Our civil aviation operations are most affected by the unprecedented disruption of the global air transportation system. At the same time, our defence and security operations are less impacted because CAE provides mission critical services worldwide,” said Marc Parent, CAE's president and CEO. “We entered this crisis from a position of strength with a leading market position, a balanced business with recurring revenue streams, and a solid financial position. Taking decisive yet flexible action will help to protect our people and operations over the short-term and gives us the necessary agility to resume long-term growth when global air travel returns. Our employees have always been at the core of CAE's success, we regret the hardship these temporary measures will cause those affected, especially during these difficult times, and we are grateful to all our employees for their contribution and dedication.” To mitigate the number of temporary layoffs, CAE significantly reduced capital expenditures and R&D investments. The company also announced cost-containment measures, including salary freezes and salary reductions for staff not affected by reduced work weeks (50 per cent for the CEO and executive team, 30 per cent for vice-presidents, 20 per cent for directors and managers, and 10 per cent for group leaders and employees). CAE is working to access government emergency relief measures and wage subsidy programs in its main operating jurisdictions and will assess their impact on its mitigation plans. As details of government assistance programs around the world are finalized, CAE will do everything it can to recall as many employees as possible. Dividend and share repurchase plan (NCIB) suspended CAE's board of directors has approved the suspension of dividend payments to common shareholders until further notice and will review this position on a quarterly basis. Core to its capital allocation priorities, CAE remains committed to paying dividends over the long-term that are commensurate with the long-term growth of its business and will seek to resume dividend payments as soon as it is appropriate. CAE's board of directors has also approved the temporary suspension of all share repurchases under its normal course issuer bid program. CAE provides essential services critical to maintaining customers' operations In civil aviation, training is highly regulated, and for pilots to remain active and to continue to hold their certifications, they must train regularly — usually every six to nine months. While training activities related to new pilot training have decreased substantially, many airlines and business jet operators have continued to conduct recurrent training to maintain the certification of their existing pilots. Two-thirds of CAE's more than 50 civil training centres worldwide continue to be operational, however training utilization is lower than usual as a result of restrictions from border closures and lockdowns that have forced temporary closures and disruptions to operations. In defence and security, as underscored by governments worldwide, CAE's work is considered essential, and its employees are deployed worldwide to actively support training and readiness requirements. Over 90 per cent of CAE's operational sites are still delivering services to support defence forces who must always be prepared and ready in the interest of national security. Playing a role in saving lives in the fight against COVID-19 To help in the fight against COVID-19, CAE Healthcare engineers and scientists have designed in 11 days a simple, maintainable, easy-to-manufacture ventilator prototype to provide life support to patients in intensive care. CAE is currently sourcing components in order to begin production of this ventilator as soon as it is approved by Health Canada. “CAE has employees around the world, and we are all proud of the impact we can have by putting our expertise to work to create a ventilator that can help save lives in the fight against COVID-19,” said Parent. “Once this prototype is approved by public health authorities, we are looking at manufacturing thousands of units in our Montreal plant and in other sites over the next few months.” CAE is also providing complimentary training seminars on how to prepare healthcare workers in the fight against COVID-19. The CAE team is launching simulation-based training solutions, both web and hardware based, to train personnel in the safe practice of ventilation and intubation, which is key to saving lives. This is even more critical right now when ventilation and intubation is being done by healthcare professionals who are not trained for these complex procedures. https://www.skiesmag.com/press-releases/cae-to-implement-temporary-layoffs-amid-covid-19-pandemic

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  October 29, 2019 | Local, Aerospace

  Heron and MQ-9 drones approved for Canadian military program

  DAVID PUGLIESE, OTTAWA CITIZEN The Department of National Defence's Remotely Piloted Aircraft System (RPAS) Project has entered into a new phase with discussions ongoing with two drone manufacturers. The RPAS project entered the definition phase on April 5 and shortly after the federal government determined two qualified suppliers were eligible for the program, Esprit de Corps military magazine reports. Public Services and Procurement Canada determined that both L3 Technologies MAS Inc. and General Atomics Aeronautical Systems, Inc., along with the U.S. government, were qualified suppliers. Under the government's Invitation to Qualify process, L3 Technologies MAS Inc. proposed the Heron TP aircraft from Israeli Aircraft Industries while the U.S. government and General Atomics Aeronautical Systems, Inc. qualified with the MQ-9 aircraft. “The project team officially initiated engagement with qualified suppliers in July 2019 as part of the Refine & Review Requirements phase,” Defence department spokeswoman Jessica Lamirande explained to Esprit de Corps. “As part of the RRR phase, the project team will continue to engage qualified suppliers and develop a Request For Proposal.” Canada's quest for an uninhabited aerial vehicle system has been under way for years. In 2006 the military laid down plans to have such a drone fleet operational by 2009. That was pushed back to 2012. Over the years the Canadian Armed Forces tried other means to buy a fleet of longer-range UAVs. In 2007 the military tried to push a sole source purchase of Predators but the Conservative government decided against that proposal. During the Libyan war in 2011, senior Canadian defence leaders pitched to the government the idea of spending up to $600 million for armed drones to take part in that conflict. That proposal was also declined. For the Afghan war, the Canadian military purchased the Sperwer, and later leased a Heron drone fleet from MDA of Richmond, BC for missions in Kandahar. Timelines have continually been revised for the drone acquisition program, originally called the Joint Unmanned Surveillance, Target Acquisition System or JUSTAS. The contract had been expected in 2018. But Lamirande said the contract for the RPAS project is now to be awarded in the Fiscal Year 2022-2023. She noted that the RPAS project will procure a new fleet of armed, medium altitude, long endurance drones capable of intelligence, surveillance and reconnaissance and precision strike in support of Canadian Armed Forces operations. The RPAS project will complement existing capabilities, such as the CP-140 patrol aircraft. “This capability will be integrated into a network of systems to enable near real-time flow of information essential to CAF operations, and to support domestic law enforcement and civilian authorities,” Lamirande said. “Additionally, it will significantly expand Canada's ability to contribute to joint intelligence, surveillance and reconnaissance operations with its allies.” The Defence Capabilities Blueprint puts funding for the project at between $1 billion and $4.99 billion but no further details have been provided Lamirande said the release of that RFP is expected in Fiscal Year 2020-2021. https://ottawacitizen.com/news/national/defence-watch/heron-and-mq-9-drones-approved-for-canadian-military-program